After Reading the Nutritional Label on the Box of His

question 114

Multiple Choice

After reading the nutritional label on the box of his favorite cookies,Ernesto was shocked to discover the high sugar content.As a result,cookies don't bring him the same satisfaction anymore,falling from 25 utils to 12 utils.Benefiting from more efficient machinery,Ernesto's favorite cookie manufacturer also lowered the price per box.What happens to Ernesto's marginal utility per dollar spent?

• A) It increases.
• B) It decreases.
• C) It stays the same.
• D) The rate of change decreases.
• E) There is not enough information to determine.

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Definitions:

Quantity

A property that can exist as a multitude or magnitude, often measured and expressed as a number.

Confidence Interval

A range of values derived from sample data that is likely to contain the value of an unknown population parameter, with a specified level of confidence.

Population Variance

The measurement of how data points in an entire population are spread out from the mean of the population.

Standard Deviation

The measure of the dispersion or variability in a set of numbers, indicating how spread out the numbers are from the mean.